Monday, July 25 2005 19:20 Hrs (IST) - World Time -

New Delhi: The Government today (July 25, 2005) gave ex-post facto approval to an audio-visual co-production agreement signed between India and Italy in 2003.

"This will provide access to transparent funding, shared risks and increased markets to Indian animation and film industry vis-a-vis the Government of the Italian Republic," Information and Broadcasting Minister S Jaipal Reddy told reporters in New Delhi after the Cabinet meeting.

On the request of the Italian government, a Memorandum of Understanding had been signed on September 3, 2003, in Italy, expressing the intention of both countries to finalise in the near future an agreement on co-production.

"In the proposed agreement, the government role is only to accord recognition to the project in their capacity as competent authorities. In addition, on the Italian side, it involves a commitment to honor their obligations as members of the European Union," an official statement said.

It said the agreement would provide incentives to Italian co-producers to look India's way as a BPO hub in the animation sector.

"This initiative has encouraged similar requests from other countries such as Germany, Hungary, Croatia, France, Poland, China, and United Kingdom," the statement said.

The global market for multimedia work for films and other visuals is expected to grow to 50 billion US dollars over the next five years and India can increase its market share from the current 0.3 per cent.